Poland will not renew contract with Gazprom

Polish state gas company PGNiG plans to abandon the practice of long-term contracts with Gazprom on gas supplies from Russia.

According to the Polish Government Commissioner for gas and energy infrastructure Peter Naimsky, the current contract expires in 2022, and will not be renewed.

Naimsky explained that if the price of Russian gas will be competitive enough, there is a possibility of its supplies to Poland, but without a long-term contract.

PGNiG buys up to 10.2 billion cubic meters of Russian gas per year.Gazprom accounts for the most part of Poland’s annual consumption, which is nearly 15 billion cubic meters per year.

In recent years, Poland was constantly seeking discounts from Russia, and gradually reduces its dependence on Russian gas.For this purpose, Poland constructed the first terminal for transporting liquefied natural gas (LNG), which can be imported in the volume of up to 5 billion cubic meters per year. Also, construction of the pipeline in the North Sea is planned to transport natural gas from Norway.